Foreign Witholding Taxes

How does this typically work for an US investor invested in foreign stocks? Investor receives dividend income from foreign company, and the foreign company witholds a certain percentage of dividends until end of year? Please explain. thanks.

i believe that’s case. my holdings in funds like MCHFX, FSEAX, etc, brought me some foreign witholding taxes that i had to report to irs for my annual tax return.

but you eventually receive the foreign W/H taxes at some point in the future, don’t you?

i dont think so. the only benefit i would receive is tax credit, if any, from irs …

Yeah, I dont think you actually get the taxes back from say France, you instead get those taxes taken out as a tax credit on your US tax form.

It’s a pain in the butt. You can do lots of paperwork to get a credit or you can take a deduction. As far as I know there is no way to get it back from France (maybe you can file a tax return in France?).

I think you would get a tax credit as you cannot be double taxed …atleast for an individual investor